Life relates to trading and trading relates to life. Constantly revealing, unfolding before us as we trade and live, so I write about how my life relates to trading and how I trade the markets. Along the way I share my opinions on anything that evokes my passion or tickles my funny bone trying not to forget that enjoying life is the best part of living.

Wednesday, April 21, 2010

The Daily Note - Earnings Season

This is really bizarre for me, but the thought occurred to ask you, my readers, about how you play earnings season and compile a story on it. Many of you who have read my musings for a while, know that I trust what is given to me to write; but I sat on this one for hours thinking surely something else will reveal itself for me to write about. So I waited, and nada, nothing, blank. So, as always, I succumb to the muses and ask. I hope you're replies will not be nada, nothing or blank. Thanks in advance.

Do you have an earnings season plan? How early do you start it? If not, how do you play the earnings game?

2 comments:

Anonymous
said...

"Do you have an earnings season plan?"

Jeff Augen wrote a book on the subject: "The Volatility Edge in Option Trading". A technical slog, but the basic idea is that there is a strong tendency for volatility to pop in the week just before earnings, thus driving up prices and in particular for options. Given the dominant big-money computerized trading going on, the tape seems to be a lot different that it was a few years ago, so this pattern of behavior is not quite as reliable and the price behaviors after earnings have been a bit wild to say the least.... But it can work.

My technique. Wait and see what everybody else is doing. I know that sounds ridiculous, but I don't have time to look at fundamentals. And, what is reported on CNBC as good news, can be totally the opposite of how the stock responds. Or, vice cersa. So, I watch the market results and go with the trend. If there's a gap up/down, I look for the pullback or reversal knowing it usually comes. If it's flat, I don't trade it at all. I'm not an analyst and there's an awful lot of info they look at that we usually can't decifer, so it's, as usual, technical indicators that I use to trade.

About Me

a posse ad esse or from being able, to being

In trading as in living, We must see the possible in order to create the actual. Through a maze of charts, indicators and endless outlook chatter, we must create our own vision and from that actualize our possibilities. In short, create and realize our dreams.
With my experience and ability to visualize, I can help you realize yours.
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Day Trading with Anni is a blog and website intended for education, entertainment and information only. The content provided herein is not to be construed as recommendations to buy or sell stocks of any kind. They are simply the opinions of the author. It is possible that the editor of this blog may own, buy, or sell stocks presented. All readers, traders, or investors should consult a qualified professional before trading any stock. The author is not an investment advisor. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts made by the author are committed at the reader's own risk, financial or otherwise.That said, all content is under copyright by the author.